Saturday, September 10, 2016

LOONY TUNES no 170

“There is something in the human psyche which denies economic truths. The explanation as to why free markets work is logical and simple to understand. The contrary evidence, that statist attempts to interfere with Adam Smith’s invisible hand always fail, is irrefutable. Yet the blame for failure is always laid at the door of capitalism. The few of us that persistently insist that right is not wrong and wrong is not right attempt a seemingly hopeless task of persuading the unwilling"

“Saying any one group controls the internet is as absurd as saying who “controls” capitalism or globalization itself. But everyone has their version of control. Silicon Valley billionaires may insist we surrender to the invisible hand of the network, which simply chooses disruption and convenience over accountability and ethics. For the federal government, it’s far easier to accuse the private sector of being in control and thwarting national security than admit that mass surveillance is an expensive and incompetent tactic.”

“Hawthorn, Sydney and Geelong have generated a kind of microcosmic alternative to the social principle of Adam Smith's "invisible hand", in which he argued the whole of society would benefit if individuals focused on their own success. The "invisible hand" in football is a social atmosphere, a program of shared behaviours and attitudes enforced by teammates in order to lift individuals into their best form.”

“These stories constitute but a tiny sliver of many thousands, if not more. They lead us to an interesting question: how is it exactly that markets fight social discrimination? Markets work in very different ways than the obvious and visible hand of state-driven policies. While the state seeks to outlaw and abolish caste identity by making discrimination illegal, markets work in quiet and invisible ways by making caste identity irrelevant.”

“Stock exchanges work according to the invisible hand of supply and demand, which determines the price where stocks are bought and sold. No trade can occur until someone is willing to sell a stock at a price that another is willing to buy it at. When there are more buyers than sellers, the stock price will rise because of the increased demand. Conversely, if more individuals are selling a stock, the price will decrease.

On any given trading day, supply and demand fluctuates back-and-forth because the attractiveness of a commodity’s price rises and falls. Because of these fluctuations, the closing and opening prices are not necessarily identical. A number of factors can affect the attractiveness of a stock in the hours between the closing bell and the next day’s opening bell. For example, if there is good news like a positive earnings announcement, the demand for a stock may increase, raising the price from the previous day’s close. It follows that bad news will negatively affect price. “

“Already haunted by bizarre ghosts and undead stars, it harbors unseen forces that tear at the universe like invisible claws and has covered up astral cannibalism and lunar murder. Investigating scientists have not always been able to make sense of why things appear out of nowhere, disappear into nowhere, happen against astronomical odds, or even exist.”